The way products are promoted and discussed is more of a barrier to taking financial advice than there being a lack of appropriate products, according to a report.
The latest Pimfa Under 40 Leadership Committee report looked at the future of advice, how it is delivered and to whom.
Areas of focus this year included how to make advice more accessible to women, how the wealth management industry can better help people who receive an inheritance, and how to encourage a greater culture of saving and investing across generations.
As well as the role of social media in financial advice including its threats and the opportunities it can present.
Female client accessibility
The report found women generally feel less confident when it comes to making investment decisions and require support from advisers, with the report suggesting it was important to engage both parties in a joint relationship.
It also revealed there is currently too much focus on investment returns and past performance and not enough on meeting personal and life goals which are more important to women, which Pimfa said the industry should incorporate into all client touchpoints.
The report recommended that firms should provide next generation programmes which would appeal to women with children because empathy and relationship building are key to female client retention.
According to the findings women value advisers who take a holistic view of their circumstances as well as high quality in person interactions.
Inheritance
Some 52 per cent of people earning over £100,000 a year are expected to receive an inheritance and have discussed a power of attorney with the generation above, according to the report.
However, this figure dropped to just 22 per cent when yearly income is below £30,000.
The report also revealed 58 per cent of people in the UK have not discussed inheritance with their families with 44 per cent reluctant to open the discussion because of concerns about mentioning mortality.
Up to 90 per cent of beneficiaries are not using their parents’ wealth manager the report found.
Saving and investing
The research also highlighted the difference in attitudes towards finance and financial advice across different generations.
Some 26 per cent of baby boomers never speak with their partner about their finances, a significantly higher percentage compared to Gen Z and Millennials, according to Pimfa.
The baby boomer generation is more reluctant to talk about finance with 63 per cent not discussing the topic with friends compared to 49 per cent of Gen X.
This compared to more than 80 per cent of millennials and Gen Z who do so at least annually.
The research showed millennials speak with a financial professional more than any other generation with 70 per cent saying they did at least once a year.
Not knowing the value of or where to go were the most common reasons for not seeking financial advice, the report revealed.
Social media
The report examined whether ‘finfluencers’ fill an educational void that otherwise should be filled by financial firms.
